Optimal Price Design in the Wholesale Electricity Market

Bigerna, Simona; Bollino, Carlo Andrea

doi:10.5547/01956574.37.si2.sbig

Cited by 12 publications

(4 citation statements)

References 22 publications

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“…The power cost of the residents is higher than that of the industrial users, and the price elasticity of the residents' demand is less than that of the industrial users. In accordance with the Ramsey pricing theory, the sales price of the residents should be higher than the industrial customers, which is in line with the general situation of foreign residents in the electricity price is higher than the price of electricity [10].…”

Section: The Analysis Of the Ramsey Pricing Methodssupporting

confidence: 70%

An Application of the Ramsey Number in the Electricity Pricing

Li¹,

Jia²

2016

JCC

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The Ramsey number is a foundational result in combinatorics. This article will introduce Ramsey number with the method of graph theory, and the Ramsey pricing theory is applied to the sales price and study of cross subsidy. Based on the status of our sales price and cross subsidy, Ramsey pricing methods theoretically guide adjustment thoughts of sales price and solve the practical problems in our life.

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Section: The Analysis Of the Ramsey Pricing Methodssupporting

confidence: 70%

An Application of the Ramsey Number in the Electricity Pricing

Li¹,

Jia²

2016

JCC

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“…Since soon, no subsidies will be required anywhere, REs will enter the market at their true LCOE, which will become the market price provided free market competition is preserved. Note that precisely this is what was required by critics of the RES solution [16].…”

Section: Free Markets Cannot Work Under Oligopoly Powermentioning

confidence: 89%

Economic Issues in Deep Low-Carbon Energy Systems

Mauleón

2020

Energies

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The main interlinked challenges to achieve a low-carbon emission economy are analyzed. It is argued first that there are no obstacles to a free market working effectively with a high penetration of distributed Renewable Energies (RE), since intermittency has been overstated, and affordable storage solutions are available because of strong learning rates. Demand-side management policies are promising too, neither are there foreseeable boundaries to the availability of economically extractable photovoltaic and wind energies. A full 100% RE system may be more challenging though, partly because bioenergy, a key dispatchable source in most available RE roadmaps, clashes with growing food needs and reforestation to counter greenhouse gases emissions. Similarly, the green growth proposal is constrained by materials availability, mainly cobalt and phosphorus, which will also constrain the deployment of electric vehicles. Alternatively, the United Nations Human Development Index may be a more suitable target for a sustainable RE system. Although history is not reassuring, the main global economic hurdle is possibly existing fossil fuel-related investments, likely to become stranded. An assessment of their value yields a substantially lower figure than is sometimes claimed, though. Finally, a limited role for nuclear energy is assessed positively, provided it is publicly owned.

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“…likely to undershoot those targets and fall short of inducing the desired mix. Because VRE market value tends to decrease faster than generation costs as installed VRE capacity rises (Bigerna and Bollino, 2016;Green and Léautier, 2017), sole market remuneration would constrain VRE entry at lower economical levels. Crucially, this holds even in the presence of technology cost reductions and adequate carbon pricing (Hirth, 2015;Kraan et al, 2019).…”

Section: Issue 2: Innovation Externalities and Industrial And Social ...mentioning

confidence: 99%